System and method for prioritized automated trading in an electronic trading environment

• US 8,688,562 B1
• Filed: 09/27/2004
• Issued: 04/01/2014
• Est. Priority Date: 09/27/2004
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Buck, Brian J.
• Primary Examiner(s): Khattar, Rajesh
• Assistant Examiner(s): SEE, CAROL A
• Application Number:
  US10/950,901
• Time in Patent Office: 3,473 Days
• Field of Search: None
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A system and method are provided for prioritized automated trading. One example method may include receiving a plurality of parameters, where each parameter has an order-related action associated with a trading strategy, and then detecting one or more events that trigger a plurality of order related actions. The method then includes determining priority levels in relation to a plurality of triggered order-related actions using at least one priority rule, and processing the plurality of triggered order-related action in an order associated with the determined priority levels.

Claims

1. A computer-based method for prioritized automated trading in an electronic trading environment, the method comprising:

defining a first trading strategy and a second trading strategy at a computer device communicatively coupled with at least one electronic exchange, wherein the first trading strategy comprises a first rule for making a first trading decision for whether to submit a first order-related request to the at least one electronic exchange and the second trading strategy comprises a second rule for making a second trading decision for whether to submit a second order-related request to the at least one electronic exchange, where the first trading strategy and the second trading strategy are independent and non-sequential;

defining at the computer device a first priority level and a second priority level for determine priority when the first and second trading strategies are to be executed substantially simultaneously;

detecting by the computer device that the first and second trading strategies are to be executed substantially simultaneously; and

executing by the computer device the first and second trading strategies in succession based on the first and second priority levels subsequent to the step of detecting.

2. The method of claim 1, wherein the first rule comprises calculating a price and a quantity associated with a first tradeable object, and wherein the second rule comprises calculating a price and a quantity associated with a second tradeable object.

3. The method of claim 1, wherein the first trading strategy is executed based on a first triggering event and the second trading strategy is executed based on a second triggering event, wherein the first and second triggering events occur at substantially the same time.

4. The method of claim 3 further comprising:

dynamically modifying at the computer device the first and second priority levels based on the first and second triggering events; and

executing by the computer device the first and second trading strategies in succession based on the modified first and second priority levels.

5. The method of claim 3, wherein any of the first and second triggering events is detected based on data being received from a source other than the at least one electronic exchange.

6. The method of claim 3, wherein any of the first and second triggering events is detected based on data being received from the at least one electronic exchange.

7. The method of claim 1, wherein the computing device is located at the at least one electronic exchange.

8. The method of claim 1, wherein a client device comprises the computing device.

9. The method of claim 1, wherein the first and second priority levels are based on a trader.

10. The method of claim 1, wherein the first and second priority levels are based on an order parameter.

11. The method of claim 1, wherein the first and second priority levels are based on market data.

12. The method of claim 1, wherein the first and second priority levels are based on an algorithm.

13. A system for prioritized automated trading in an electronic trading environment, the system comprising:

a processor configured to define a first trading strategy and a second trading strategy, wherein the first trading strategy comprises a first rule for making a first trading decision for whether to submit a first order-related request to the at least one electronic exchange and the second trading strategy comprises a second rule for making a second trading decision for whether to submit a second order-related request to the at least one electronic exchange, where the first trading strategy and the second trading strategy are independent and non-sequential;

a priority manager configured to define a first priority level and a second priority level for determining priority when the first and second trading strategies are to be executed substantially simultaneously; and

a strategy processor configured to detect whether the first and second trading strategies are to be executed substantially simultaneously and to execute the first and second trading strategies in succession based on the first and second priority levels subsequent to the step of detecting.

14. The system of claim 13, wherein the first rule comprises calculating a price and a quantity associated with a first tradeable object, and wherein the second rule comprises calculating a price and a quantity associated with a first tradeable object.

15. The system of claim 13, wherein the first trading strategy is executed based on a first triggering event and the second trading strategy is executed based on a second triggering event, wherein the first and second triggering events occur at substantially the same time.

16. The system of claim 15, where the first and second priority levels are modifiable based on the first and second triggering events, and where the first and second trading strategies in succession based on the modified first and second priority levels.

17. The system of claim 13, wherein the system comprises an electronic exchange.

18. The system of claim 13, wherein the system comprises a client device.

19. The system of claim 13, wherein the first and second priority levels are based on a trader.

20. The system of claim 13, wherein the first and second priority levels are based on an order parameter.

21. The system of claim 13, wherein the first and second priority levels are based on market data.

22. The system of claim 13, wherein the first and second priority levels are based on an algorithm.

23. A non-transitory computer readable medium having instructions recorded thereon that when executed on a computer cause the computer to perform acts comprising:

defining a first trading strategy and a second trading strategy, wherein the first trading strategy comprises a first rule for making a first trading decision for whether to submit a first order-related request to the at least one electronic exchange; and

the second trading strategy comprises a second rule for making a second trading decision for whether to submit a second order-related request to the at least one electronic exchange, where the first trading strategy and the second trading strategy are independent and non-sequential;

defining a first priority level and a second priority level for determining priority when the first and second trading strategies are to be executed substantially simultaneously;

detecting whether the first and second trading strategies are to be executed substantially simultaneously; and

executing by the computer device the first and second trading strategies in succession based on the first and second priority levels subsequent to the step of detecting.